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1. Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
A) It negatively affects subcontracting.
B) It is more risky.
C) It is time consuming.
D) It negatively affects hiring and firing.
2. Which tier-level supplier directly supplies materials or services to a processing and packaging plant?
A) Tier two suppliers
B) Tier four suppliers
C) Tier three suppliers
D) Tier five suppliers
E) Tier one suppliers
3. What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
A) Overtime is not a long-term solution.
B) Overtime results in a buildup of excess inventory.
C) Overtime is typically a 50% wage premium.
D) Overtime decreases the labor cost per unit.
4. Which formula would compute process velocity?
A) Actual output / standard output
B) Output / input
C) Throughput time / value-added time
D) Time a resource is used / time a resource is available
5. What is one advantage of a periodic review system?
A) All items are reviewed during the same time interval.
B) Inventory balances are updated after every transaction.
C) Items are handled individually.
D) Less inventory is needed to protect against stockouts.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: E | Question # 3 Answer: A,C | Question # 4 Answer: C | Question # 5 Answer: A |
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